# In the matter of Siddarth Organisation Limited Company Petition No. (IB)-54-9-JPR-2018

> NCLT judgment dated 2020-02-13. Citation: TCN-2020-NCLT-01974. The case involves an application filed by Mr. Vijay Kumar Todi, proprietor of M/s V. One,…

- **Court:** NCLT
- **Order date:** 13 Feb 2020
- **Citation:** TCN-2020-NCLT-01974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/siddarth-organisation-limited-company-petition-no-ib-54-9-jpr-2018-bcc45eeb

## Summary

### Background

The case involves an application filed by Mr. Vijay Kumar Todi, proprietor of M/s V. One, against M/s. Siddarth Organisation Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Todi claims to be an Operational Creditor, alleging that M/s. Siddarth Organisation Limited, the Corporate Debtor, defaulted in paying an amount of Rs. 3,67,297/- for job work carried out by the Applicant. The Corporate Debtor disputes the claim, alleging a pre-existing dispute regarding the quality of work and raising concerns about the validity of the demand notice and the Applicant's accounting practices.

## Facts

Mr. Vijay Kumar Todi, proprietor of M/s V. One, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s. Siddarth Organisation Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). Mr. Todi claimed that M/s. Siddarth Organisation Limited defaulted in paying Rs. 3,67,297/- for job work of printing and designing on fabrics. The Corporate Debtor argued that there was a pre-existing dispute regarding the quality of work, supported by debit notes issued to the Applicant. The Corporate Debtor also alleged that the demand notice was invalid and that the Applicant's accounting practices were questionable. The Applicant submitted that the Corporate Debtor had deducted TDS on the invoices, which was reflected

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## Issues and analysis

### Issue 1: Whether there exists a genuine dispute between the Operational Creditor and the Corporate Debtor …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovative Private Limited vs. Kirusa Software

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**Reasoning:** The Tribunal found that the defenses raised by the Corporate Debtor were tenuous and

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**Interpretation:** The term 'dispute' under Section 5(6) of the IBC, 2016, includes a suit or

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**Application:** In this case, the Tribunal concluded that the Corporate Debtor's claim of a

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## Parties

- **Judges:** SHRI. P.S.N.…; RAGHU N…; +1 more
- **Appellants:** Vijay Kuma…
- **Respondents:** M/s Siddarth…

## Timeline

- **2015-11-10 — Corporate Debtor…**: The Corporate Debtor, through its representative, approached the Applicant and requested…
- **2015-11-14 — Job Work by A…**: Applicant carried out job work for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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